It’s springtime here in Canada—that wonderful, unpredictable season where it can feel like summer one moment and winter the very next. For this reason, a friend of ours keeps an extra set of clothes in his car for every kind of weather: shorts, a raincoat, even a parka.

 

It’s a smart approach—and a great analogy for how we can think about the markets right now.

 

Just like we can’t control the weather, we can’t control the markets—but we can be prepared. Whether it’s stormy or sunny, our focus is on staying ready to adapt and take advantage of whatever conditions come our way.

 

And that’s the exact mindset we’re applying to the latest economic developments.

 

So, what’s behind our current “bad weather?”

 

For over two months, we’ve been on a roller-coaster of tariff news from the U.S. Most recently, President Donald Trump has introduced another round of tariffs that will impact us here in Canada, as well as the rest of the world. On March 27th, he instituted a 25% tariff on our auto industry.1

 

Then, late Wednesday afternoon, a 10% base tariff increase was announced. While this new increase does not apply as an addition to those already established for Canada, it does, however, apply broadly across the globe.

 

Unsurprisingly, the markets responded sharply. The S&P/TSX Composite fell 5.29% today. The U.S. markets also took a hit, with the Dow Jones down 4.46% and Nasdaq sliding nearly 7%.2

 

It’s not great news—but here’s what we’re keeping in mind:

 

First, we don’t know the full scope of how the tariffs will affect businesses in the long run. Some industries may prove more resilient than expected.

 

Second, past tariffs have often led to negotiations—and the same could happen here. Some of those talks are already happening publicly, through headlines and reciprocal tariffs. Canada has levied tariffs on the U.S. as pushback during previous rounds of tariffs, and Prime Minister Mark Carney has already vowed to respond to the new tariffs on the auto industry, which went into effect April 3rd.3

 

Third, markets have a way of adjusting to geopolitical changes over time. As partial evidence of this, there have been calls for years to do away with provincial trade barriers. Now we’re seeing real momentum behind efforts to do just that—something that could strengthen trade within Canada and open the door to more localized investment opportunities.4

 

Amid all the uncertainty, we’ve noticed something encouraging: a renewed sense of unity and patriotism. It’s been a welcome reminder of who we are as a country—and why so many of us are proud to call it home.

 

Here’s the good news:

 

We’ve planned for this kind of weather.

 

No matter what this season brings—rain, shine, or tariffs— we’re prepared to take advantage of opportunities where we see value. We’ll also make adjustments as needed if conditions change. Think of it like keeping those extra clothes in the car—we’re ready for whatever comes next.

 

Ultimately, just like the April weather, things are pretty fluid at this time. But rest assured, we are keeping a very close eye on everything in your portfolio and will be in touch with you immediately if changes are needed.

 

Of course, if you’d like to talk through your portfolio—or if you have funds set aside and want to explore new opportunities—please don’t hesitate to reach out. Our team is always happy to help.

 

In the meantime, we hope you are able to get outdoors, no matter the weather. After all, it’s part of what makes this country so special.

 

Sincerely,

 

The Omell Financial Group

 

 

1 “Trump’s sweeping new levies on U.S. trade partners threatens to fracture global systems of trade,” The Globe and Mail, 2 April 2025, https://www.theglobeandmail.com/world/article-trump-says-25-per-cent-tariff-on-foreign-made-automobiles-coming-at/

2 “S&P 500 and Nasdaq drop the most since 2020 after Trump’s tariff onslaught,” CNBC, 3 April 2025, https://www.cnbc.com/2025/04/02/stock-market-today-live-updates-trump-tariffs.html

3 “Carney says Canada will fight back as Trump takes trade war to the world,” CBC, 3 April 2025, https://www.cbc.ca/news/politics/livestory/carney-says-canada-will-fight-back-as-trump-takes-trade-war-to-the-world-9.6708337

4 “Ottowa agrees with provinces to act fast to topple internal trade barriers,” The Globe and Mail, 6 March 2025, https://www.theglobeandmail.com/canada/article-ottawa-strikes-deal-with-provinces-territories-on-internal-trade-amid/

 

Original from BGM Writer Lisa Christensen and Matt Hicken

 

Sourced from Bill Good Letters Library

 

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.

 

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.